Is It Time for the U.S. to Lift Its Restrictions on Oil Exports?
Wall Street Journal (Jason Bordoff): It’s a whole new oil world for the U.S.
After decades of declining domestic oil production, the country is in the middle of an unexpected boom. Driven by new technology that reaches previously inaccessible reserves, production has soared by millions of barrels a day. This surge has been a key factor driving oil prices down.
So, should U.S. oil companies be allowed to sell that oil overseas?
Because of a restriction dating back to the oil scares of the 1970s, producers for the most part can’t export their oil. The export ban was part of a series of laws passed to ease supply concerns and prevent U.S. producers from skirting price controls by selling crude into the world market at higher prices.
Now there’s a growing call to lift that ban, from oil companies and others. The game has fundamentally changed, they argue. Allowing American oil to flow onto the global market will encourage more production, since the fuel will fetch higher prices than it could at home. It will also pump more cash into the U.S. economy and over time may end up driving down the price of gas for Americans.
Read more: http://on.wsj.com/1xtyecF
More industry news:
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- Column (John Kemp): Oil in Arcadia: http://reut.rs/11r8TaF
By Mary Leschper
Originally posted November 24, 2014
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